Summary
Federal Reserve Chair Jerome Powell stated that the uncertainty caused by President Trump's tariffs means the Fed will cautiously decide on cutting interest rates. The Federal Reserve recently kept interest rates unchanged but indicated possible rate cuts later this year due to steady inflation and economic growth concerns.
Key Facts
- Jerome Powell is the Chair of the Federal Reserve, which is responsible for managing interest rates in the U.S.
- President Trump’s tariffs create uncertain conditions for the U.S. economy, affecting decisions on interest rates.
- The Fed left interest rates unchanged but suggested they might lower them twice later this year.
- Trump has criticized Powell and pushed for faster interest rate cuts.
- Powell mentioned inflation and economic growth as reasons for the current interest rate strategy.
- Businesses may still have older inventories not yet affected by tariffs, and summer data will show the impact on consumer prices.
- The central bank aims to keep prices stable and ensure there is enough work for people who want jobs.
- Some Fed governors are open to lowering rates sooner, possibly as early as July.
